Block-holders and monitoring mechanisms in Nigeria

Companies continue to fold up after the global economic melt-down of 2008 starting with the Enron saga. One of the reasons offered by practitioners and intellectuals in their search for the cause and solution to the problem is information asymmetry between the managements and the shareholders. It is...

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Main Authors:	Oluyemisi Rachael Arowolo, Ayoib Che Ahmad
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11967/ http://journalarticle.ukm.my/11967/ http://journalarticle.ukm.my/11967/1/12553-62479-1-PB.pdf

id	ukm-11967
recordtype	eprints
spelling	ukm-119672018-07-31T09:19:21Z http://journalarticle.ukm.my/11967/ Block-holders and monitoring mechanisms in Nigeria Oluyemisi Rachael Arowolo, Ayoib Che Ahmad, Companies continue to fold up after the global economic melt-down of 2008 starting with the Enron saga. One of the reasons offered by practitioners and intellectuals in their search for the cause and solution to the problem is information asymmetry between the managements and the shareholders. It is extremely necessary ever since the sagas and continuous business failures and financial distress in Nigeria, in particular, to focus on monitoring mechanisms (MM), especially in Sub-Saharan countries. In addition, it is essential to understand the factors relating to MM as it cannot work in isolation. The purpose of this study is therefore to examine the extent to which block-holders impact on MM using the annual reports of 111 Nigerian non-financial listed companies in the context of agency theory. In addition, data were collected from the companies in respect of their internal auditing using the questionnaire as these are not available in the annual reports. The findings provide evidence that the block-holders significantly relate to monitoring mechanisms. Thus, this paper provides a new knowledge regarding monitoring mechanisms and its antecedents (directorship, internal and external auditing). These findings are with policy implications for the board of directors to implement their monitoring responsibilities. The findings also suggest policy implications for the internal and external auditors. The findings are useful for further review of corporate governance guidelines by the regulatory agencies and government. The paper contributes to knowledge in Sub-Saharan Africa, Nigeria in particular by examining block-holders in relation to the aggregate cost of monitoring mechanisms (directorship, internal and external auditing). Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11967/1/12553-62479-1-PB.pdf Oluyemisi Rachael Arowolo, and Ayoib Che Ahmad, (2017) Block-holders and monitoring mechanisms in Nigeria. Asian Journal of Accounting and Governance, 8 . pp. 71-78. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Companies continue to fold up after the global economic melt-down of 2008 starting with the Enron saga. One of the reasons offered by practitioners and intellectuals in their search for the cause and solution to the problem is information asymmetry between the managements and the shareholders. It is extremely necessary ever since the sagas and continuous business failures and financial distress in Nigeria, in particular, to focus on monitoring mechanisms (MM), especially in Sub-Saharan countries. In addition, it is essential to understand the factors relating to MM as it cannot work in isolation. The purpose of this study is therefore to examine the extent to which block-holders impact on MM using the annual reports of 111 Nigerian non-financial listed companies in the context of agency theory. In addition, data were collected from the companies in respect of their internal auditing using the questionnaire as these are not available in the annual reports. The findings provide evidence that the block-holders significantly relate to monitoring mechanisms. Thus, this paper provides a new knowledge regarding monitoring mechanisms and its antecedents (directorship, internal and external auditing). These findings are with policy implications for the board of directors to implement their monitoring responsibilities. The findings also suggest policy implications for the internal and external auditors. The findings are useful for further review of corporate governance guidelines by the regulatory agencies and government. The paper contributes to knowledge in Sub-Saharan Africa, Nigeria in particular by examining block-holders in relation to the aggregate cost of monitoring mechanisms (directorship, internal and external auditing).
format	Article
author	Oluyemisi Rachael Arowolo, Ayoib Che Ahmad,
spellingShingle	Oluyemisi Rachael Arowolo, Ayoib Che Ahmad, Block-holders and monitoring mechanisms in Nigeria
author_facet	Oluyemisi Rachael Arowolo, Ayoib Che Ahmad,
author_sort	Oluyemisi Rachael Arowolo,
title	Block-holders and monitoring mechanisms in Nigeria
title_short	Block-holders and monitoring mechanisms in Nigeria
title_full	Block-holders and monitoring mechanisms in Nigeria
title_fullStr	Block-holders and monitoring mechanisms in Nigeria
title_full_unstemmed	Block-holders and monitoring mechanisms in Nigeria
title_sort	block-holders and monitoring mechanisms in nigeria
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11967/ http://journalarticle.ukm.my/11967/ http://journalarticle.ukm.my/11967/1/12553-62479-1-PB.pdf
first_indexed	2023-09-18T20:01:33Z
last_indexed	2023-09-18T20:01:33Z
_version_	1777406882345910272

Block-holders and monitoring mechanisms in Nigeria

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